Interest free loan taxable or not

When a firm borrows loan and if interest is required to be paid, then the interest can be claimed as expenditure under PGBP.

If interest is not required to be paid, it is not allowed as expense, as such net effect is same; as such it is not included as income to borrower.

A businessman borrows loan for business purpose i.e. to earn profit, and thereby he is allowed to deduct interest paid as revenue expenditure.

While any other entity (non-Business) borrows loan for investment or personal expenditures, and there is no specific scope for its deduction, (except home loan). But in that case also, it's not taxable in the hands of borrower.

In short, Interest income received is taxable, but not the interest paid over loan.

Most welcome.